However Urban Splash said it will now concentrate on the FLACQ-designed regeneration scheme on the site next to the four-star hotel which also won a Civic Trust Award in 2010 and has featured on TV programmes since it was restored to its former glory.

English Lakes will continue to operate the grade-two listed hotel, which has welcomed hundreds of famous guests over the years and features art by renowned sculptor and engraver Eric Gill, under a lease arrangement.

Chris Richardson of The Lancaster Foundation said: ‘We are delighted to invest in this great hotel. We believe with our commitment to the property and English Lakes Hotels management the hotel will go from strength to strength.’

Tom Bloxham, chairman of Urban Splash, said: ‘We are very proud of the Midland Hotel and all that has been achieved since it opened in June 2008. The Midland Hotel is a much loved building, and it was a joy for us to be able to restore and reopen this iconic hotel once again.

‘We have sold the freehold to the Lancashire Foundation in an off market transaction. The sale shows that there is a demand for quality Urban Splash assets.

‘This sale completes phase one of our development in Morecambe and we are now concentrating our efforts on securing planning for phase two of the proposals on the adjoining site.’

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